For Telkom use only Proprietary and confidential company information NGNEC March 2013

2 LEGAL NOTICE Legal Notice This document, and the attachment/s thereto are intended strictly for the addressee(s), and should only be used for the purposes originally intended for. Any use of this document, or its attachments, by any one, and for any purpose other than for its original intent, is a violation of the confidentiality agreement stipulated by this statement. In such a case, Telkom reserves the right to claim direct, indirect, special or consequential damages, including, and without limitation, any loss of profits, loss of revenue, loss of income, business interruption, loss of programs or data to the value as determined by Telkom. Telkom shall also not be liable to any third party for damages of whatever nature suffered, as a result of the usage of this document for any purpose or reason other than that intended for. For Telkom use only Proprietary and confidential company information

3 For Telkom use only Proprietary and confidential company information STATUS REPORT – EXECUTIVE SUMMARY In progressNot started At riskOn track OverdueDelayed AreaProject StatusNext stepsKey issues Balance of Year 1 (1-12m) Complete installation Cutover – 4 May 2013 RRDG Randburg ph3 ITBM blocks 5K blocks LXC & VM Remotes to be cut-over by 8 April 2013 Exchange cutover – 8 May 2013 Funding approval Bothasig 12,691 Ports, 4 Remotes Preparation work started Orders placed Milnerton 22,585 Ports, 22 Remotes Preparation work started Orders placed Melkbosstrand 3,585 Ports, Costing for Funding approval completed Table View 16,810 Ports, 19 Remotes Preparation work started Orders placed WTVW Remotes to be cut-over by 30 April 2013 Exchange cutover – 28 June 2013 Part of Year 2 program Remotes to be cut-over by 16 May 2013 Exchange cutover – 3 Jun 2013 Funding approval Orders placed Remotes to be cut-over by 8 April 2013 Exchange cut-over 6 May 2013 NDNN Umdloti Beach 858 Ports, 2 Remotes Costing for Funding approval completed Effingham 4,358 Ports, 2 Remotes Costing for Funding approval completed Sea Cow Lake 5,164 Ports, 1 Remote Costing for Funding approval completed Umhlanga Rocks 3,952 Ports Costing for Funding approval completed Embokodwe 1,063 Ports, 2 Remotes Costing for Funding approval completed La Lucia 7,213 Ports, 5 Remotes Costing for Funding approval completed Springfield 2,870 Ports Costing for Funding approval completed Gateway 6,646 Ports, 12 Remotes Costing for Funding approval completed Durban North 16,343 Ports, 10 Remotes Orders placed Remotes to be cut-over by 22 April 2013 Exchange cut-over 20 May 2013 Remotes to be cut-over by 9 April 2013 Exchange cut-over 8 May 2013 Exchange cut-over 13 May 2013 Remotes to be cut-over by 16 April 2013 Exchange cut-over 15 May 2013 Remotes to be cut-over by 22 April 2013 Exchange cut-over 21 May 2013 Exchange cut-over 31 May 2013 Remotes to be cut-over by 25 July 2013 Exchange cut-over 23 Aug 2013 Remotes to be cut-over by 25 April 2013 Exchange cut-over 27 May 2013 Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed Funding approval Orders placed T9/X17A1 & G23/G24 Cutover Completed on 13 Dec

4 For Telkom use only Proprietary and confidential company information STATUS REPORT – EXECUTIVE SUMMARY Balance of Year 1 - Program

5 For Telkom use only Proprietary and confidential company information STATUS REPORT – EXECUTIVE SUMMARY AreaProject In progressNot started At riskOn track OverdueDelayed StatusNext stepsKey issues Months (13-24) Months (25-36) Months (37-48) 121 exchanges to be migrated 1,339 remotes to be deployed GC 27/409 (exchanges/remotes) NER 28/271 CR 4/20 ER 21/134 SR 18/108 WR 23/ exchanges to be migrated 958 remotes to be deployed GC 42/230 (exchanges/remotes) NER 36/249 CR 14/17 ER 20/153 SR 18/63 WR 22/ exchanges to be migrated 983 remotes to be deployed GC 51/154 (exchanges/remotes) NER 85/299 CR 19/13 ER 63/273 SR 30/40 WR 57/204 Obtain final agreement between Networks and Marketing on plan Motivate for multi-year funding Develop resource plan based on roll-out plan Develop program plan with roles and responsibilities Develop training plan Develop forecast schedule for vendors and third party equipment suppliers Network Upgrade for Access & TDM Network 3562 remote sites (media release) 603 exchanges (T600 scenario) 3 year 250 days per year 5 remotes sites per day every day for 3 years 1 exchange per day every day for next 3 years Year 2, 3, 4 are preliminary figures subject to change ITS 2012 Pilot CES Upgrade NG BSS/OSS Support FMC eChannel Dev. ITS 2013 Single customer view Ph 1 next gen products Ph 1NGN fulfilment automation CRM SOC ITS 2015 Managed service & bill NGN fulfilment automation (ph3) Ph 3 next gen products Media product dev. Optimise assurance Optimise workforce Optimise customer & user experience Continue to launch NGN products ITS 2014 Integrated real time billing Integrated problem handling NGN workforce transformation Assurance & SLAs Revamp CSM Ph2 fulfilment auto Ph 2 next gen prod Turndown CMSS Reminder Slide

6 For Telkom use only Proprietary and confidential company information NGNEC EXECUTIVE SUMMARY NGNEC Roll-out Plan on a Page for Periods month – Under review Under Construction Note : Quantities for Remotes and Exchanges are in terms of MSANs and Nodes respectively

7 For Telkom use only Proprietary and confidential company information NGNEC EXECUTIVE SUMMARY NGNEC Roll-out Plan on a Page for Periods month – Under review Under Construction Note : Quantities for Remotes are in terms of MSANs and Exchanges are actual Exchanges quantities not nodes

8 For Telkom use only Proprietary and confidential company information Note 1 : Excluding Balance of Year 1 Note 2 : Excluding possible year 3 impact assumed from Q3 of 2013 NGNEC Regional Ramp-up on a Page for Periods month (Yr2 to Y3 Q2) – Under review NGNEC EXECUTIVE SUMMARY Under Construction

9 For Telkom use only Proprietary and confidential company information FTE External Capability OEM/OSP OvertimeNFTE NGNEC Resource Model